We have received a RMC Invoice of Rs. 5,32,350 and on this invoice We have to Pay service tax and Rajasthan Vat both. In service tax it covers under work contract and being a company we have to pay service tax on 70 % of invoice value i.e. 70 %-- 3,72,645 Service tax and SBC @ 14 and .5 % Rs. 52,170.3 & 1,863.23. My question is whether we have to pay vat on balance 30 % amount i.e.1,59,705 and Vat @ 14.5% 23,157.23 OR as per Rajasthan Vat act, Vat need to be paid on 75 % of invoice value i.e. 3,99,262.5 and vat @ 14.5% 57,893.06
Please suggest whether vat need to be paid on 75 % value of invoice or 30 % value of invoice as soon as possible.
15 January 2016
If you know the exact value of goods supplied then it is better to deduct from total invoice and charge only on the portion of services and vat on goods amount but if you are unable to determine then pay vat according to the composition scheme of rajasthan vat applicable on wct.better would be the first option since in service tax valuation rule value as per vat records can be ascertain and to pay service tax on service portion only and it is beneficial for you to pay vat only on goods portion and charge goods & services in invoice separately.
CAclubindia
